These 2 ASX shares could be good opportunities

Credit Corp and FINEOS could be ASX share ideas.

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There are a group of ASX shares that may be options to look at because of their current valuations, according to brokers.

Businesses that are well-liked by multiple brokers could be an opportunity staring investors in the face. But it could also mean that all of those brokers are wrong at the same time.

Multiple analysts have said the below two businesses are ones that could be opportunities:

Credit Corp Group Limited (ASX: CCP)

Credit Corp is a large debt collector that's operating in both Australia and the USA. It also has a lending division in Australia and New Zealand.

The business is currently rated as a buy by at least three different brokers, including Morgans which has a price target on the business of $33.75.

In FY21, Credit Corp saw a near-record investment outlay driven by the purchased debt ledger (PDL) acquisition from Collection House Limited (ASX: CLH) and a return to lending, despite a COVID-induced temporary reduction in PDL supply.

The ASX share said that FY22 started off well, with a record July contracted purchasing pipeline. The month on month charge-off volumes were also starting to grow.

Overall, the FY21 profit was driven by the US performance. Total revenue fell 1%, but ANZ debt buying profit increased 11% to $54.1 million and US debt buying profit more than doubled to $17.7 million. That helped total profit grow 11% to $88.1 million.

In FY22, Credit Corp is expecting to generate net profit after tax of between $85 million to $95 million, with PDL acquisitions of between $200 million to $240 million.

Based on Morgans' numbers, the Credit Corp share price is valued at 22x FY22's estimated earnings.

FINEOS Corp Holdings PLC (ASX: FCL)

FINEOS describes itself as a global company providing software to the employee benefits, life, accident and health industry. It offers clients purpose-built products. One of its offerings is called AdminSuite which takes care of new business, billing, claims, absence and policy administration, which enables "improved operational efficiency, increased effectiveness and excellent customer care."

It's currently rated as a buy by at least three brokers, including Citi, which has a price target on the ASX tech share of $5.22. After a recent capital raising, Citi thinks the company is well funded to put some of the capital to work in its current business, as well as trying to find other potential businesses to buy.

In FY21, FINEOS generated €108.3 million of revenue, up 23.3%. It also saw 23% of gross profit growth to €72 million.

In FY22, the ASX share is expecting revenue to be in the range of €125 million to €130 million, with subscription revenue anticipated to grow by around 30%. It's expecting to be successful with its pipeline of cross-selling and up-selling opportunities with existing clients and new wins.

At the time of the capital raising, FINEOS CEO Michael Kelly said:

Following a strong FY21 result, FINEOS continues to execute on its strategic priorities and invest in further product development and recent acquisition integrations. Our growth expectations for FY22 are underpinned by a pipeline of cross-sell and up-sell opportunities with existing clients in addition to new name opportunities. The equity raising ensures FINEOS has the balance sheet strength and financial flexibility to aggressively pursue those opportunities and accelerate growth.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended FINEOS Corporation Holdings plc. The Motley Fool Australia has recommended FINEOS Corporation Holdings plc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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